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Kremlin wants to increase taxes on Google, Apple for 'milking' Russia

In a 90-minute interview dotted with cusswords, German Klimenko, Vladimir Putin's new Internet czar said forcing Google and Apple to pay more taxes and prohibiting Microsoft Windows from government computers are necessary measures.

Klimenko, 49, is pushing to increase taxes on US companies to create level playing field for Russian competitors such as Yandex and Mail.ru. His efforts are similar to those governments across Europe and beyond who are trying to extract more revenue out of Google, Apple and other multinationals with increasingly complex billing and ownership structures.

The Putin adviser already has a supporter in parliament: Andrey Lugovoi, one of two former KGB officers accused by a UK judge of assassinating former agent and a vocal Putin critic, Alexander Litvinenko in London in 2006. Lugovoi is rooting for a bill that would apply an 18 percent value added tax to as much as 300 billion rubles ($3.9 billion) of revenue that Google, Apple and other foreign companies make each year.

Google, Apple and Microsoft all refused to comment.

Putin wants Internet companies to hoard all the personal data they collect on Russian users on servers located inside the country. Microsoft, Google and other US companies "reached the point of no return" when they conformed to sanctions over Putin's seizure of Crimea by stopping all business with the peninsula, according to Klimenko.

As a result, it's "inevitable" Russia will switch state networks from Windows to an open-source system based on Linux, a move 22,000 municipal governments are prepared to make immediately, Klimenko said. He added, "It's like a wife seeing her husband with another woman -- he can swear an oath afterward, but the trust is lost."